MEDIA: Dragons’ Den Blog Interview

Thanks to the Dragons’ Den Blog for being in touch to discuss The Worst Ways to Raise Cash as an Entrepreneur; it’s always great to share some tips and traps when it comes to building a company.

Although it’s no secret that there are various approaches than an entrepreneur could take to finance a young venture, this should be considered in a broader context. Startup companies typically receive their initial financing through “founders, family, and friends”, with perhaps some support through grant and similar programs. What tends to get lost in the process is whether or not doing so is actually a good investment.  Considering this includes determining the likelihood of: (i) the capital being repaid, at some point in time; and (ii) the return that could be generated, if any. Doing so can really only be achieved by way of developing a thorough and complete business plan, including a financial forecast for at least a three year period.

Entrepreneurs and business planning don’t always have a good partnership, however.  Business planning tends to get downplayed as “not that important” or “impossible to do for a startup”; both of which are false. When an entrepreneur prepares a business plan, they tend to insufficiently address areas that are of significance to investors, such as industry and market issues and the right business model, and instead, focus on an abundance of product and technical content.  The impact?  Little to no chance of raising investment capital.

Entrepreneurs should, instead, consider whether or not a startup is worth spending their time and money on, as it will surely take plenty of both. It is important to take the time to do so before investing one’s own capital, regardless of the source, and before asking others to do the same. As a business advisor and former venture capitalist, I have seen too many young companies that likely would not have been launched, had these questions been asked and answered in advance. Further to this point, rarely have I met an entrepreneur who actually took the time to do their business planning homework first, although I have met many who wished that they had better understood the financing implications and realistic potential of their company sooner.

Not sure how to address these important areas?  Advisors can help. Not only can they assist with putting the right business planning efforts in place, they can also help to identify opportunities to generate cash sooner, which is another area that entrepreneurs tend to miss.  Contact us to learn more.

EVENTS: Coming to a City Near You!

Just about to hit the road on my speaking tour, as part of the Knowledge Bureau CE Summits! This series focuses on year end planning for investors and small businesses, designed for advisors who work with these important clients. I’m looking forward to speaking about challenges that family businesses face in two sessions: The Family Business Time Bomb: Transition, Improve, or Wind up? and a case study discussion, Embracing Disruption and Risk in Succession Planning (yes, you can!).

While it’s typical for a family business to be inundated with challenges and change, seldom have so many potential threats been evident: demographic factors, disruption of key industries, dramatic change in the global economy, and uncertain financial times.  It’s no longer sufficient for leaders to focus their efforts primarily on addressing typical “family business” problems.  Doing so puts the very future of the company and the family’s finances at risk and makes successful transition less likely.

Business owners need to take action now, in order to defuse the ticking time bomb that puts the family’s opportunity for future wealth creation at risk.  Advisors can play a key role in this regard, but only if they bring the value and expertise that business leaders are seeking. Key areas of assistance include the ability to:

  • Work with clients to build value;
  • Develop goals and implement strategies, in terms of business modeling, track record, competitive advantage, and other growth related factors; and
  • Initiate transition planning in a manner that addresses the “time bomb” factors that business owners are facing.

In order to get there, professional service providers need to understand the advisory skillset that business leaders are seeking.  Doing so provides the foundation for differentiation in the marketplace, as well as building a robust advisory firm over the long term.  It’s up to you to ensure that your firm doesn’t get left behind.

Join us for this valuable session by registering here.  See you on the road!

EVENTS: Speaking at the Business Builder Retreat

Pleased to announce that I will be speaking at the Business Builder Retreat in Quebec City this November, with tips to rethink your strategic plan, given the unique challenges and opportunities associated with the “new economy”.  Business leaders are facing the most robust macro-level dynamics in a generation, in terms of technological advancement, industry disruption, economic change, and financial uncertainty: are you ready?

The Business Builder Retreat is designed for growth oriented business leaders.  Experience a unique educational event designed especially for business owners on an exponential growth path. Explore topics critical to your leadership development, with a network of business owners from across Canada who understand the challenges you meet daily, competing in a world awash with unprecedented change. The focus is equally on healthy living priorities and the strategic business decisions required to prepare your company, and the stakeholders around it, for opportunities in today’s new economy. Take 24 important hours to refresh and refocus and get more of the personal and business results that you seek.

Details and registration are here.  See you at the Retreat!

EVENTS: Speaking Tour Announced

Coming to a city near you this November for the Continuing Education (CE) Summits, focusing on year end planning for investors and small businesses.

I have traveled on speaking tours with The Knowledge Bureau for several years and it is always great to meet session attendees who are seeking to gain knowledge and improve their companies.  Those who do so have the opportunity to differentiate themselves within the competitive marketplace (yes, they are in the minority, which only increases the impact).

Year end planning is not only important for advisors, but also for their clients. Taking a proactive approach to stay on top of new developments raises the likelihood of being of a valuable resource to clients, so don’t miss this opportunity.

Stay tuned for future updates, but in the meantime, you can register here. Looking forward to seeing you on the road!

MEDIA: Appearance on SET for Success (680 CJOB Radio)

Pleased to have appeared on SET for Success on 680 CJOB with Richard Lannon to discuss some important areas that business leaders need to address to successfully grow and develop their companies.  Being a market leader is a goal for many, but in order to realize a company’s full potential, it’s critical to identify what that means for your business and then develop and successfully implement the plan.  This process is one that is fraught with challenges, but having the right assistance could made success much more likely, to the benefit of your company.

As a business advisor, my approach is to bring a holistic perspective, recognizing that all functional areas within a company are related and impact one another.  For a company to grow on a sustainable basis, all functional areas must be operating well, to provide the foundation for building capacity and sound operations.  Those who do this well are in a position to become market leaders, representing the choice of investors, strategic partners, high calibre employees, and customers.  Those who take a piecemeal approach tend to end up frustrated, wondering why their results are not better.

When companies are growing (or planning to do so), they must also recognize that capital is an important component; this is something that business leaders tend to discover too late.  As a former venture capitalist still active in the industry, the vast majority of business plans that I see are not investor ready; this is the case at least 95% of the time.  Investor readiness involves understanding the expectations of financial partners and investors, which differ significantly from where business leaders tend to focus their efforts.

Advisors could be helpful in a range of areas, including assisting companies with investor readiness and developing strategies for growth and implementation.  As important as planning is, the most significant failures could occur during the implementation process, which is another lesson that business leaders tend to learn too late.  If the objective is to generate sustainable growth and build value in a company so it could be transitioned to someone else in the future, market leaders would not attempt to do so without sound advice.

You can listen to our conversation hereContact us to learn more about taking the next steps in growth for your company.

When Canada Day is also Tariff Day

Happy Canada Day!  I’m very proud to live in such a beautiful, diverse, and well respected country.

This year, Canada Day includes all of the usual celebrations, but also a particular action that demonstrates our strength and resolve as a country; newly imposed tariffs on the United States, in response to those that have been in force against Canada and other countries since June 1st.  As indicated by both our Prime Minister and Foreign Affairs Minister, Canada had “no choice” in terms of imposing these tariffs, which represent a response in equal measure, not escalation.  Our government has also taken various steps to help industries impacted by the tariffs, including export diversification, training, and business liquidity support.

Although there are various complexities around how tariffs work, the expectation is that there will be price increases on some items, for both consumers and companies, making the need to source products that are not subject these measures of particular importance.  As there is a lot being said about the implications for consumers, let’s consider some things that Canadian businesses should be thinking about:

  • Know your costs:  Too often, companies do not have a good understanding of the actual cost to deliver products and services, on a current, comprehensive, and complete basis.  Typical shortfalls include not recognizing all of the costs that should be included (such as overhead items or allocation of all labour costs) or not reflecting cost increases and other charges on an ongoing basis.  Not only does this provide a false sense of product margins, it also results in a poor basis for establishing prices.  The latter can be particularly destructive for companies, with each sale occurring at a price that is too low to support operations.
  • Identify supplier options:  Although companies might have longstanding supply and other relationships, it’s never been more important to expand the list.  Managing risk involves identifying a range of suppliers, including outside of the United States, to ensure that options can quickly be accessed, in the event that pricing or delivery terms become untenable.
  • Research market opportunities:  Tariffs can create business opportunities for Canadian companies, in situations where US goods become less price competitive.  Fulfilling market opportunities requires targeted research, and assuming that new business is no different than a company’s current customers is a recipe for disaster.  Take the time to fully understand what’s needed in order to generate success.
  • Secure necessary capital:  Business leaders don’t always remember that approaching new opportunities and generating growth require capital.  Reasons include the need to expand facilities, procure raw materials, increase distribution, hire staff, or conduct the previously mentioned research, often in advance of when sales proceeds are received.  In order to ensure a successful outcome, it’s critical to understand capital requirements, as well as the source, before approaching growth opportunities.
  • Monitor financial results:  As new business opportunities evolve, financial results must be monitored on a timely basis, to ensure that progress is on track.  In order to do so, a company must have a strong complement of fundamental systems, processes, and procedures in place, to ensure that good results and information are being generated.  This includes ensuring that the person in the senior finance role has the right qualifications, skills, and experience, particularly for a growth related company.

Putting these key areas into place generally takes longer than expected, so business leaders should be doing so now.  Advisors can be particularly helpful, including identifying market opportunities, action planning requirements, implementation options, access to partners, and tested solutions that can be fast-tracked, representing a competitive edge.  Feel free to contact us for more information during this important time in the Canadian economy.

MEDIA FEATURE: Consultants Who Love Consulting

I’m pleased to be featured in the April issue of Consult, a publication of CMC-Canada in the Consultants Who Love Consulting section.

First things first, what is a CMC?  The Certified Management Consultant (CMC) designation is the profession’s only international certification mark, recognized in over 40 countries internationally.  It represents a commitment to the highest standards of consulting and adherence to the ethical standards of the profession.  I have held my CMC designation since 1997 and have found that it separates professional consultants from those who represent themselves as consultants or advisors, perhaps by way of having knowledge in a particular area, but without formal education in terms of the consulting process (yes, there is a consulting process, and utilizing this knowledge makes a significant difference to client engagements).  You can learn more about the CMC designation here.

So, now, here’s a bit more about my personal interest in consulting.

Early in my career, I knew that a “narrow” path of focus wasn’t for me, as I had (and continue to have) an innate curiosity about the holistic workings of a business, in terms of how all of its parts are interconnected.  Like a sports team on their field of play, success isn’t likely without the coordinated effort of all members, working in the same direction.  Too often, organizations seek “quick fixes” in a particular area, such as marketing, and wonder why their efforts are not successful and fail to achieve the desired results.  Simply put, marketing isn’t just about what goes on in the Marketing Department.

I also found myself much more interested in tangible outcomes; action that could be taken to make a company successful, as opposed to just wandering along an undefined path.  The ability to do this is tremendously powerful and separates an advisor such as myself from those who spend their time in more theoretical or long term oriented areas.  There is nothing wrong with these perspectives; they serve a different purpose.

Not surprisingly, I spent almost 10 years as an executive in the fast-paced venture capital industry, where getting things done and generating results were daily priorities.  I believe that bringing this type of experience to client companies can create a competitive edge in the marketplace, BUT, business leaders have to actually want to make it happen.  Doing so isn’t for the faint of heart, as real progress isn’t always easy and the commitment to persevere often takes much more than anticipated.   These leaders, however, know that there isn’t another option, as they are not the type to continue on their existing, less than ideal path, ignoring the obvious signs that charting a new course is needed.

Bottom line, I believe that being in business is all about opportunities, and it’s up to business leaders to make the most of them.  Those who are driven to do so wouldn’t take these steps without sound advice, from those who have “been there”, “done that”, and truly understand the tremendous opportunities and challenges that are at stake.

As a CMC, I wouldn’t have it any other way.  Anything less is, well, less.

NEWS: Executive Business Builder Program Now Available!

As the lead instructor, I’m pleased to announce that the Executive Business Builder Program is now available!

This program is designed to help business leaders build a future-ready company, including building value and best practices, through courses, mentorship, and access to a powerful network of inspirational, like-minded people.  Learn practical strategies for building a company that can generate solid performance and be positioned for transfer to someone else in the future.  Value doesn’t just happen, and leaders need to take tangible steps to enhance their company.

The first course, Strategic Business Planning, is already available, and additional courses are already in development.  Don’t miss out on this opportunity to move from business leader to business builder!

NEWS: Strategic Business Planning Course Now Available!

I’m pleased to announce the launch of my new Strategic Business Planning Course, the first course in the new Executive Business Builder Program at The Knowledge Bureau.

It might be news to a lot of CEO’s and entrepreneurs that most business plans are not prepared very well.  Although a company’s management might find the plan useful, they tend to fall well short of what external parties, such as potential financial partners, require in order to make a financing or investment decision.  This course provides sound business planning guidelines for both internal and external use, putting leaders in a better position to pursue the necessary capital to support the next level of growth.

Getting it right involves developing a thorough and complete business model, strategy, and plan (including a financial forecast), as well as preparing to make the approach to potential financial partners.  Gain insight into a range of important areas, from the perspective of a former investor, including:

  • The key sections of a business plan and what should be included
  • What to consider when building a business model
  • How to identify and select a target market(s)
  • How to select and position products and services
  • Guidelines for developing a marketing strategy
  • Developing an organizational structure, including identifying key roles
  • Guidelines for preparing a financial forecast, including assumptions
  • The perspective of external parties, such as financial partners
  • Guidelines for approaching financial partners

Details and registration are available here.  Stay tuned for additional courses in the Executive Business Builder Program!

Speaking Tour Day 4: Notes From the Road

We have completed the Western segment of the Distinguished Advisor Workshop (DAW) speaking tour and have met many talented advisors along the way.  As is the case with any session of this nature, the level of value increases when peer learning is part of the process, so your participation is appreciated!

I’ve been sharing thoughts around the topics of business transition and the next generation, as well as business continuity planning.  Some advisors who don’t work in these areas might be asking the question: why should I attend this type of session?  Here are some things to think about:

  • It’s likely that your clients are facing transition related issues, such as business transactions and succession planning.  These areas can require a lot of support to compensate for knowledge gaps, so checking in with clients on a regular basis and getting a sense of what they are up to is an important must for advisors.
  • Although you might not be the one to perform whatever transition related assistance is required, advisors should seek to have a range of skillsets within their professional network, to assist clients when needed.  Advisors that are well connected are in a position to add tremendous value to clients.
  • Those who are not up to date on client needs run the very real risk of being replaced by advisors who do a better job in this regard.  Clients expect more than just completion of the deliverable at hand, and successful advisors know how to ensure that they are providing incremental value.

Advisors can enhance their position by taking the time to understand the issues that their clients are facing, being a supportive, while objective sounding board, and making the right connections when needed.  Raise the likelihood that you are the first call that your clients make, in the comfort that, one way or another, you can help.

Join us at the remaining DAW sessions in Toronto and Ottawa to learn more; you can register here